How does a market compete with other firms efficiently to maintain profit in a competitive market over time? Show diagram with shifts in price, cost, quantity, etc
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How does a market compete with other firms efficiently to maintain profit in a competitive market over time? Show diagram with shifts in price, cost, quantity, etc.
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- Please graph what the market looks like with a short decrease in demand and what one firm looks like with a short run decrease in demand. Please make sure to graph your answer with all necessary labeling.What are the requirements for a perfect competition market?How does a competitive firm determine the quantity that maximizes profit?
- Soft drink industry has been historically profitable why? compare the economies of the concentrate business to the economics of the bottling business. Why do you think the profitability is so different between these businesses?(1) Use the graph to answer the question below. The quantity is measured in thousands of units. What will this firm decide to do in the long run? A-It will stay in the market because the price is above its AVC at its profit-maximizing output. B-It will leave the market because the price is below its ATC at its profit-maximizing output. C-It will increase its price to point B to earn normal profit. D-It will increase its output until its profit-maximizing output level is equal to B. E-Insufficient data to determine. (2) A dairy farmer is operating in a perfectly competitive market. The market price for milk is between the farmer's average variable cost and average total cost at the profit-maximizing level of output. What will the farmer do? A-Produce more milk. B-Produce less milk. C-Shut down in the short run. D-Operate in the short run and leave the industry in the long run. E-Insufficient information to determine (3) A firm operating in a perfectly competitive market cannot…How much should a firm sell of a particular product in order to maximize profit? What factor does it have to consider in arriving at this decision?
- Use the following graphs for questions 22 and 23. At what price would a firm exit the market? (a) Relationship of total cost to total variable cost and total fixed cost (b) Relationship of marginal cost to average total cost, average variable cost, and average fixed cost Total Costs (dollars) 700 Cost 150 Per 140 TC Unit 130 TVC (dollars) 120 MC 600 110 100 500 90 80 400 70 60 ATC 300 TFC 50 AVC 40 AFC 200 30 20 TFC 100 10 AFC 0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of Output Quantity of Output (units per hour) (units per hour) O $20 O $30 $45 $50Ukraine is one of the biggest exporters of sunflower oil in the world. War between Ukraine and Russia hence significantly impacted the available stock of the sunflower oil in the world’s market. Either sunflower oil or olive oil is an input to manufacture biscuit. Consider that the market for olive oil is in perfect competition and initially at the equilibrium. Explain the impact of the war on the supply, demand, equilibrium on market of olive oil Give a graphical representationDraw a diagram to indicate the profit-maximizing level of output, the profit-maximizing price, and the size of the profit.
- The following table gives you cost and revenue information for Mac & Kayla's Stacked Sandwiches, which are sold in a perfectly competitive market. Sandwiches Total Cost Variable Cost Average Total Cost Marginal Cost Revenue 0 $20 1 $30 2 3 4 5 6 $64 $28 $88 www $19 $21 $90 Use the above information. Answer in an integer format, with no commas, dollar signs, or decimals. What is the price of a sandwich?Complete the table above. Graph AVC , ATC, and MC on the same graph. Suppose market price is $30. How much will the firm produce in the short run? How much are total revenue? Suppose market price is $50. How much will the firm produce in the short run? What are total profits?If you're a manager in a highly competitive business such where should you put your most effort to maximize profit? Pricing or cost cutting?
